See why N.J. sued 'As Seen on TV' marketer

A.J. Khubani, founder and chief executive officer of Telebrands, speaks in Boonton in this 2012 file photo. The state has sued Telebrands, accusing it of using high-pressure sales tactics and making returns difficult.
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Telebrands, the Fairfield-based marketer of "As Seen on TV" products such as Pocket Hose and Olde Brooklyn Lantern, has been accused of using high-pressure sales tactics to sell to customers and then made it hard to get refunds, state consumer officials said.

The state Division of Consumer Affairs has filed a lawsuit against Telebrands, a response to about 340 customer complaints from 2012 through this past July, as well as an undercover operation in which investigators purchased Telebrands' products.

In a statement, the company said customer satisfaction is important.

"We take pride that for more than three decades, tens of millions of consumers have trusted Telebrands for delivering innovative products," said A.J. Khubani, president of Telebrands. "Consumer satisfaction is always our top priority. We are confident that this matter with the state of New Jersey will be resolved in short order."

Consumers who called the company's toll-free numbers were connected to an automated phone ordering system rather than a live representative. Through the automated system, customers were dragged through a lengthy ordering system that could last more than 30 minutes.

They were offered additional products but were not given a way to decline the offer. An investigator who purchased Instabulb was solicited for at least seven additional products, the state said.

The company also charged for and shipped additional merchandise that consumers didn't want, the state said.

Customers received the wrong item or merchandise they didn't order, the state said. They weren't given instructions on how to make a return or were required to return to Telebrands items they didn't order at their own expense, court papers state.

"This action against Telebrands alleges that consumers were repeatedly pressured through gimmickry misrepresentations, and high-pressure sales tactics to buy products they didn't want," acting state Consumer Affairs Director Steve Lee said in a statement.

"What's just as unconscionable is that when consumers attempted to return unwanted products and obtain refunds, they allegedly couldn't reach actual customer service representatives and were subjected to return policies that differed from what was represented in ads and on the company's website."

The state alleges that Telebrands violated the terms of a 2001 order that resolved an earlier lawsuit that required the company to comply with the state Consumer Fraud Act.

In addition, the state alleges the company violated the Consumer Fraud Act by engaging in unconscionable commercial practices, making false promises and knowingly omitted material facts. The company also allegedly violated advertising regulations by obscuring material facts, such as processing fees and using misleading terms, such as "SPECIAL OFFER" in its infomercials and advertisements.